MANILA, Philippines — The political party of Manila Mayor Isko Moreno urged the Bureau of Internal Revenue anew Friday to continue the government’s collection of the P203 billion estate tax that has remained unpaid by the heirs led by estate administrator and fellow presidential bet Ferdinand Marcos Jr.
In a letter to BIR Commissioner Ceasar Dulay and sent to the media, Aksyon Demokratiko chairperson Ernest Ramel Jr. called for the garnishment of the bank accounts relating to the estate of the late president Ferdinand Marcos Sr.
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Ramel argued that doing so would ensure that the tax liability of the Marcos family will be paid in part or in full.
In the two-page letter dated April 21, the centrist political party requested the BIR chief “to immediately and continuously implement collection efforts, whether civil or criminal manner of collection, including distraint/garnishment of the bank accounts relating to the estate of the late dictator Marcos Sr.”
The letter was received by the office of the BIR Commissioner on the same day, Aksyon Demokratiko said.
It was the third letter sent by Ramel to BIR after the first correspondence asked the Commissioner whether his agency has sent a demand letter to the Marcoses. Dulay responded then that they did indeed send a demand letter on Dec. 2, 2021.
The political party said earlier that the existence of such a demand letter implies that the estate tax liability of the Marcos Estate is not yet fully paid in spite of the enforced assessment and collection remedies applied by the BIR.
Beyond its confirmation of the demand, however, the BIR has refused to publicize the actual copy of the letter.
Ramel said it is imperative that the BIR exercise its mandate to enforce public contribution (taxes) for the benefit of its citizens, in this case, the 110 million Filipino people.
The party chairperson also pointed out that “it is therefore obligatory on the part of the BIR to pursue the enforcement of its collection powers and duties, which include the remedy of Section 221 of the old and present Code.”
“The remedy for the enforcement of Statutory Penal Provisions of all sorts shall be by criminal or civil action, as the particular situation may require, subject to the approval of the Commissioner as provided for in Sec. 221 of the old and present Code,” Ramel said.
Why does this matter?
To recall, the Presidential Commission on Good Government, the agency created to recover ill-gotten wealth from the Marcoses and their cronies, said that the tax bureau determined the following liabilities in 1991:
- Deficiency Estate Tax Assessment against the Estate of Ferdinand Marcos in the amount of P23,293,607,638.
- Deficiency Income Tax Assessments against Ferdinand Marcos and Imelda Marcos in the aggregate amount of P184,159,289.70 for the years 1985 to 1986
- Deficiency Income Tax Assessment against Ferdinand Marcos Jr. [for the years] 1982 to 1985 in the aggregate amount of P20,410.
The unpaid Marcos estate tax has ballooned to P203 billion due to surcharges and penalties levied by the BIR.
Marcos filed a petition against this before the Court of Appeals, which dismissed the petition on June 5, 1999 on the ground that the estate tax assessment of BIR — amounting to P23,293,607,638 — had already become final and unappealable.
The Supreme Court would later affirm the Court of Appeals' decision. Former Supreme Court associate justice Antonio Carpio earlier said the written demand has to be renewed every five years for the debt to be collectible. Since the 1997 ruling by the Supreme Court, five administrations have been unable to collect the tax.
No less than Finance Secretary Carlos Dominguez, whose department has supervision over the BIR, admitted that the estate tax liability remains unpaid until the present time.
“We believe that it is in the best interest of the Filipino People that the taxes to be collected be put into its public use especially in this time of pandemic,” Ramel said.